Microsoft has announced it will shut down its limited operations in Pakistan after 25 years as part of a global strategy to reduce its workforce. The tech giant cited global restructuring and a shift to a cloud-based, partner-led model as reasons for the closure.
The move is part of Microsoft’s largest layoff round since 2023, cutting roughly 9,100 jobs worldwide, or about 4% of its workforce. Various stakeholders have termed this decision as a “troubling sign” for Pakistan’s economy.
Former Microsoft Pakistan Country Manager, Jawwad Rehman, urged the government and IT minister to engage with tech giants with a bold KPI-driven plan. He noted that Microsoft’s exit reflects the current business climate in Pakistan, stating that “even global giants like Microsoft find it unsustainable to stay.”
Former Pakistan president Arif Alvi expressed concern over Microsoft shutting down operations, calling it “a troubling sign for our economic future.” He recalled that Microsoft once considered expanding into Pakistan but chose Vietnam instead by late 2022 due to instability.
Microsoft’s operations in Pakistan were limited, focusing on liaison offices for enterprise, education, and government clients. Much of this work had already been shifted to local partners, while licensing and contracts were managed from its European hub in Ireland.
The closure highlights the challenges faced by tech companies operating in Pakistan and raises concerns about the country’s economic future and its ability to attract and retain major technology investments.
